Registered Retirement Income Fund (RRIF)

You’ve saved for your retirement and now you need an income. RRIFs allow you to draw an income while growing your savings tax deferred. You only pay tax on the money you take out.

Under the rules governing registered retirement savings plans (RRSPs), you must collapse these plans by the last day of the year in which you turn 71. This means you must convert your savings plan to a vehicle geared to provide income, such as an income plan or an annuity.

There are many types of income options, depending on the type of funds you have accumulated.

Registered retirement income funds (RRIFs) – a common option for investors converting their RRSP to an income plan.
Life income funds (LIFs) and locked-in retirement income funds (LRIFs) – an income option for investors with locked-in registered retirement savings plans.
Payout annuities – an option that provides guaranteed payments to meet your fixed-income needs.
Prescribed retirement income funds (PRIFs) – for funds originating from locked-in RRSPs in Saskatchewan.

Registered retirement income funds (RRIFs) and payout annuities are the most common options.

When you convert your registered retirement savings plan (RRSP) to an income option, the capital keeps growing tax-deferred. You only pay taxes on the amount you receive from the income option.

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